The Power of $10 a Month on Debt

Think that $10 can't make a difference on paying down debt? Not so! $10 a month can kickstart your debt repayments and get you started on the path to being debt-free.

Perhaps you’d love to make a change and start working your way from under credit card debt, your auto loan, or your mortgage, but you’re living paycheck to paycheck and just don’t see where that extra money is going to come from to pay everything off. You may feel overwhelmed and feel like it’s just easier to continue living how you’re living rather than make any change since it’s not likely to make a difference.

But that’s not true!

Starting with anything is better than not starting at all! Can you come up with just $10 extra a month to pay towards debt? If you can, add it to your debt repayment. It’s small, but it can make a difference over the long run.

If you pay just an extra $10 per month on a $150,000 mortgage with a 4% interest rate, you can save $3,243 over the course of your 30 year mortgage and shave 9 months off your mortgage. Plus, if you pay PMI on the mortgage, you’ll likely be able to cancel it earlier than scheduled. If you’re paying off credit card debt with a much higher interest rate, it can have an even larger impact on your savings. Remember, every dollar you pay off is interest you don’t have to pay over the long term!

The Power of Seeing the Balance Decrease

Once, you make that small change and start paying the extra $10 a month towards debt repayment, you’re likely to discover that you like seeing the balance on your debt decreasing just a bit faster than normal, and you might be willing to make a few life changes to save some extra money so you can pay just a little more each month.

When we were paying off my student loans, I loved to see the balance dropping, and I was super motivated to find even more money that I could pay each month to get it paid off even faster. It turned into a game with me.

How about you? Do you feel like paying an extra $10 is not even worth it? If you’ve started paying extra on your loan, has it motivated you to find even more you can send in?

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Comments

  1. Definitely worth it! All those small amounts really add up!

  2. Kristin says:

    Yes! I love making an extra $65/month toward my auto loan! Watching the debt disappear is sooooo gratifying. And seeing that a payment isn’t due until a couple of months in advance is a nice safety net, too!

  3. Lauren says:

    My husband and I have been paying an extra $6 on one of my student loans. It happened on accident when I round up when we were guessing what our budget might look like. We ended up paying the extra $6 and saw how much money we saved on the back end. It was amazing how much interest we saved! We ended up continuing to pay the extra $6 on that and added $10 onto another student loan. It is completely worth it. I would encourage you all to look at how much you save at the end of each payment. It really helps keep you motivated. I know some people who keep a change jar in their house. Once it gets full they roll the coins and use that money to pay off debt. It is amazing how much loose change adds up.

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